A report by the U.S. Department of Labour to Congress says impending wage hikes will cause more damage to the Commonwealth of the Northern Mariana's ailing economy.
It said that raising the local minimum wage to the federal level would have adverse impacts on employment and lead to more population declines.
The Saipan Tribune reports that increasing the CNMI wage to 7-US dollars and 25 an hour is comparable to raising the U.S. minimum wage to $16.50 an hour.
A federal wage law which went into effect last year requires the hourly wage in the CNMI to increase by 50 cents each year until the federal minimum wage of $7.25 is reached.
The economy is in overall decline, and its current economic situation makes it especially vulnerable to additional shocks.
The U.S. Labour report's findings bolster the argument of the local government and private sector, who were against the minimum wage increase.
